You can use STAR to PACE Direct with segregated cash balances and use the cash balance tables to break out traded or settled cash balances by custodian cash account in the custody basis. When you accrue interest on cash balances, STAR to PACE Direct process reads the period to date accrual values and populates such values on the appropriate cash account cash position.

Use STAR to PACE Direct with Cash Balance Accruals

After you set up STAR to PACE Direct for use with cash segregation, no additional STAR to PACE setup is needed for cash balance accruals. 

In the STAR database, cash balances are stored at the asset and custodian level. When you use cash segregation, STAR to PACE rolls up the cash balances by currency and cash account in the Eagle data warehouse. STAR to PACE Direct uses the ESTAR_TRADED_CASH_BALANCE table and the ESTAR_SETTLED_CASH_BALANCE table to provide cash balances in the position and lot level position tables for both non custody and custody accounting bases.

It generates cash balances for all five date types (post, trade, accounting, settle, and month end accounting). It creates cash records for each custody cash account level in the data warehouse lot level. This option allows you to report on segregated cash balances if you use cash segregation, and affects all accounting bases for a given entity.

When you accrue interest on cash balances, you create a cash balance accrual security to represent cash that is accruing income. Each fund's cash balance held in a particular cash account is represented through this security position. Any daily balance is represented through adjustment records in the STAR database.

The STAR to PACE Direct process does not create a position for the cash balance accrual security in the Eagle data warehouse. Instead, the STAR to PACE Direct process reads the period to date accrual values pertaining to the cash balance accrual security position for a given date type and push date, and populates such values on the appropriate cash account cash position.

The daily balance adjustment activities of the core STAR processing are not populated in Eagle data warehouse's trade and cash activity tables. However, the adjustments do affect the performance cash flows associated with Eagle's Performance solution. STAR to PACE Direct processing derives cash activity information for use by Performance under the control of the system control value assigned to the cash activity event.

It performs a lookup using the CODE VALUE table for code category STAR_PERF_FLOW to derive the action to take when populating cash flow and reflexive cash row records in the CASH_ACTIVITY table. The following entry applies to the adjustment events that change the cash balance accrual security position.